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Chicago, IL – January 21, 2020 – Stocks in this week’s article are The Buckle, Inc. BKE, The TJX Companies, Inc. TJX, Digi International Inc. DGII and Pure Storage, Inc. PSTG.
Earnings growth interests almost everyone, from the top brass to research analysts. After all, earnings are a measure of the money a company is generating. Notably, earnings are essentially revenues that the company generates after deducting the cost of production over a given period of time.
Nonetheless, earnings acceleration works even better when it comes to boosting the stock price. Studies have shown that a majority of stocks had seen acceleration in earnings before a rally in stock price.
Primarily, earnings acceleration is the incremental growth in earnings of a company. In other words, if the rate of a company’s quarter-over-quarter earnings growth increases within a stipulated frame of time, it can be referred to as earnings acceleration.
In case of earnings growth, you pay for something that is already reflected in the stock price. But earnings acceleration helps spot stocks that haven’t caught the attention of investors yet, which once secured will invariably le...